Neoteric AI News Digest 14: From Search Battles to AI on the Frontlines

Welcome to the 14th issue of the Neoteric AI News Digest! The AI landscape continuously reminds us it’s nowhere near slowing down — and these past two weeks were no different. New tools, impressive funding rounds, and a dash of controversy are keeping things lively.

From ambitious startups to industry giants, everyone’s racing to carve their niche in AI. This issue dives into unexpected partnerships (and the unexpected reasons behind them), ChatGPT’s latest move to rival Google in search, new tools to tackle hallucinations, and more. Buckle up — this roundup covers another batch of events shaping the AI world.

Wearable tech takes on gastric diagnostics with $18M boost

Let's kick off this issue with some exciting developments from the healthcare industry: Alimetry, a New Zealand-based medtech startup, has raised $18 million in Series A2 funding for a wearable device that could revolutionize the diagnosis of gastric disorders. This innovative gadget brings us one step closer to noninvasive, efficient gut health analysis, using an AI-powered electrode array applied to the stomach to detect the faint electrical signals of the digestive system.

What makes Alimetry's solution stand out is its ability to decode these signals — 100 times weaker than those of the heart — thanks to a high-density array of 64 electrodes and advanced AI. This allows clinicians to classify patient conditions into specific “phenotypes,” which guides more tailored treatments. The wearable itself is single-use, but its accompanying reader is reusable, offering a practical model for hospital settings.

The AI algorithms, trained on thousands of patient tests, sift through the "gastric noise" to deliver accurate diagnostic insights. And while the wearable can't pinpoint every gut issue, it promises to help diagnose functional gastric disorders with far fewer invasive tests, addressing a massive gap in gastroenterology.

Having already earned multiple FDA approvals, Alimetry is now setting its sights on broadening its U.S. reach with targeted market expansion and hopes to add even more features in future product versions.

For more on Alimetry’s wearable tech and its recent funding, read the full article on TechCrunch.

The battle of the coding assistants: Amazon Q Developer vs. GitHub Copilot

Let’s move on to some good news for developers looking to boost productivity with AI: AWS just launched a major update to its AI-powered coding assistant, Amazon Q Developer, aimed squarely at challenging GitHub Copilot. This feature-packed tool offers a seamless in-line assistant for coding tasks in IDEs like Visual Studio Code and JetBrains, making code optimization, commenting, and testing as simple as highlighting text and selecting an action.

Powered by Claude 3.5 Sonnet — backed by Amazon’s investment in Anthropic — Q Developer is designed to help developers stay focused in their coding environment. Rather than toggling between chat and code windows, developers can prompt Q Developer for in-line suggestions and edits. The tool is available with a free tier that includes limited actions and a Pro tier priced at $19 per month for expanded functionality.

Originally launched as Amazon CodeWhisperer, Q Developer now includes options for in-line refactoring and automatic documentation. AWS is aiming to reduce friction in workflows and streamline coding tasks, while Microsoft’s GitHub Copilot has recently expanded to support multiple AI models, including Google’s Gemini and OpenAI’s GPT series, and integrated into Xcode and Azure, positioning itself as adaptable to varied coding environments.

With both Amazon and Microsoft making aggressive moves, the competition for developer loyalty is heating up. While Amazon is prioritizing seamless in-editor AI support, Microsoft aims to offer Copilot’s versatility across a wide range of environments. With these AI tools, coding is transforming into an AI-augmented workflow — and both AWS and Microsoft want to be the go-to solution in this emerging market.

For more on AWS's latest enhancements to Amazon Q Developer, read the full article here.

Patronus AI tackles hallucinations with self-serve safety API

Imagine a chatbot confidently suggesting a fictional product or an AI-powered financial advisor "making up" market data. These AI hallucinations, once seen as quirky, are now costly liabilities. Aiming to tackle this issue is, Patronus AI, a San Francisco startup just launched the world’s first (or so it claims) self-serve platform for detecting and preventing AI failures in real-time. Backed by $17 million in Series A funding, Patronus offers companies a way to catch these errors before they reach end-users.

At the core of Patronus's solution is Lynx, a model designed to detect hallucinations more accurately than GPT-4, outperforming it in medical accuracy tests by 8.3%. Beyond simple error detection, Patronus lets companies create custom “judge evaluators” — rules written in plain English to fit specific needs. For example, a healthcare provider might focus on patient safety, while a financial firm could prioritize compliance.

Other features include CopyrightCatcher to flag protected content and FinanceBench, the first benchmark for financial AI performance. Starting at $10 per 1,000 API calls, Patronus’s pay-as-you-go model brings AI safety within reach of companies of all sizes.

With regulators stepping in on AI safety, tools like Patronus may soon become essential. Not only does it prevent errors, but it also helps models improve over time—a critical step forward as AI tech continues to advance.

Wanna learn more? Read the full article on VentureBeat.

Big tech vs. regulation: Microsoft and a16z rally against AI oversight

It wouldn’t be a proper AI News Digest without some regulatory news—so here it is. In a surprising alliance, Microsoft and venture capital giant Andreessen Horowitz (a16z) have come together to push back against AI regulations they see as stifling innovation. Microsoft CEO Satya Nadella and a16z’s Marc Andreessen led a united front, asking lawmakers to reconsider regulations like California’s recent SB 1047, which was fiercely opposed by big tech. Their joint message is clear: regulations could hurt smaller tech players, not just large incumbents.

The argument centers on a “market-based approach” to AI oversight. Instead of proactive regulation, the group argues for reactive policies targeting misuse rather than preemptive restrictions. However, critics argue that this stance aligns with big tech’s traditional playbook: fighting state regulations while calling for broader federal guidelines that often go unenforced.

One focal point is the “right to learn,” where a16z and Microsoft argue that AI should freely access data to "learn" in the same way humans do. They’re effectively challenging copyright, suggesting that AI’s ability to process vast datasets should take priority over intellectual property restrictions. It’s a stance that has drawn controversy, as it implies AI systems could bypass copyright protections without compensation.

Their suggestions also include well-intentioned but widely palatable ideas, like funding digital literacy and promoting open data pools. Yet the real ask, according to critics, is a call for minimal interference in an industry they view as foundational to the future of innovation.

For more details, check out the full article on TechCrunch.

ChatGPT steps up to challenge Google with new search feature

Did you hear about OpenAI’s new “ChatGPT Search” feature (moving it closer to a direct rivalry with Google)? Initially available to ChatGPT Plus and SearchGPT waitlist users, it lets people use natural language to ask questions and receive up-to-date information along with cited sources. A Chrome extension also integrates ChatGPT Search into the browsing experience, making it even more accessible.

ChatGPT Search partners with top publishers — including Reuters, Vox Media, and the Financial Times — to license news content, delivering more reliable and attributed results. This partnership aims to improve how information is sourced and attributed, and it offers publishers an expanded reach for their content. Notably absent from the list is The New York Times… which might have something to do with the fact it’s currently in a legal dispute with OpenAI over copyright. (But that’s just a guess.)

The addition of Search allows ChatGPT users to stay within the platform for online queries, reducing reliance on external search engines. With Google’s global market share in search slipping slightly from 90% to 87%, ChatGPT’s enhanced capabilities reflect the growing shift toward AI-integrated search tools.

As AI continues to reshape the search landscape, OpenAI faces a crucial challenge: tackling hallucinations to ensure accuracy. For ChatGPT users, this feature promises a more seamless search experience—but its success will depend on OpenAI’s ability to consistently deliver fact-based results.

Discover more about ChatGPT's search capabilities in the CNET article.

Jericho Security lands historic Pentagon contract for AI-driven defense

In a milestone for AI in defense, New York-based Jericho Security has secured the Department of Defense's first generative AI contract. The $1.8 million deal, awarded through the Air Force’s AFWERX innovation hub, calls on Jericho to advance cybersecurity by simulating real-world phishing and cyberattack scenarios aimed at military personnel.

Jericho’s approach uses generative AI to replicate sophisticated, multi-channel phishing campaigns, from emails and texts to deepfake calls. The goal? To train personnel on handling attacks that target human vulnerability—the leading cause of security breaches. Jericho's platform customizes training based on individual risk profiles, enhancing resilience against these evolving threats.

CEO Sage Wohns explains that Jericho employs a “predator and prey” model, enabling its AI to continuously evolve against new threats, rather than reacting to known issues. This model simulates both offensive and defensive strategies, providing the Air Force with a real-time edge in cybersecurity.

This contract positions Jericho to expand its reach from commercial to government sectors, a significant leap for the young company. With cybersecurity investment rising, Jericho’s military-grade standards and focus on human-centric training signal a new frontier in AI-driven defense solutions.

For details on Jericho Security's Pentagon contract, see the full article here.

As the AI frontier expands, the dynamics grow more complex — companies aren’t just racing to innovate; they’re navigating an ever-growing web of ethical, regulatory, and security challenges. Whether it’s redefining search, reshaping defense, or resisting regulation, these stories reflect a field that’s not just about technology but about influence and control. The stakes are high, and as AI evolves, so too will the strategies to harness its potential. We’re here to keep you in the loop every step of the way!

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